Paul A. Krasker, Esq. founded the Law Office of Paul A. Krasker, P.A. on July 1, 2009 and previously was a name
sharehold within the commercial department of the law firm of Moyle, Flanigan, Katz, Breton, White & Krasker, P.A.
in West Palm Beach. Mr. Krasker practices in the areas of real property, business and general corporate law.
His corporate practice centers on counseling businesses on entity...

Foreclosure Defense Alternatives

An important part of foreclosure defense is considering the various foreclosure alternatives available. In light of the government programs that have been developed and refined over the past several years, there are many alternatives to foreclosure available for struggling homeowners. The following are the most widely utilized loss mitigation options:

Loan Modification: A loan modification is a change to the terms of the original mortgage loan agreement. Depending on the lender and the type of loan, foreclosure attorneys are often able to negotiate a change of terms with the lender, through a lower interest rate, payment, or balance reduction. Many distressed homeowners find this option helpful because it lowers the monthly payment and allows them to remain in the home. Many homeowners are able to achieve this type of solution through the use of the government program, HAMP (Home Affordable Mortgage Program). Typically homeowners enlist the help of a foreclosure attorney to assist them with this process, as the communication with the bank can be tedious and time consuming for homeowners to do on their own.

Bankruptcy: More and more homeowners are filing bankruptcy in coordination with their foreclosure defense efforts. Many distressed homeowners often have other debts that they are having a difficult time keeping up with, and often bankruptcy is a viable option to create a clean slate and get bills organized in a more manageable structure. Additionally, once a homeowner files bankruptcy, the foreclosure proceedings are put on hold, thereby giving them more time to create a feasible mortgage workout solution.

Short Sale: A short sale is a home sale where the bank agrees to allow the home to be sold for less than what is owed on the home, what is typically known as an underwater home. The option is attractive to those who are interested in selling their home to explore a more affordable housing option. Because so many homes lost a tremendous amount of equity in the housing crisis, this option became necessary for many people to have a chance to sell their home at all. A foreclosure defense attorney or real estate attorney and its professionals have the ability to effectively negotiate the terms of a short sale for clients.

Deed-In-Lieu of Foreclosure: In some cases, the homeowner is not a candidate for the above options, and he or she wishes to surrender the property back to the bank in order to stop the foreclosure proceedings. An advantage to this option is that the homeowner immediately stops the foreclosure proceedings, thus ending the stress of a foreclosure. The homeowner may also receive more generous terms from the bank and less damage to his or her credit.